In May of this year, Whitehouse Village Council voted to remove a 0.75% income tax credit for residents who pay tax on income earned outside the village limits. In response, some Whitehouse residents initiated a referendum to reverse the action, which now has been placed on the Nov. 8, 2022, ballot.
Find information, resources and an explanation on the referendum below.
Letter sent to Whitehouse Residents
Line Item Budget 2022, Department Budget 2022, Line Item Budget 2021, Department Budget 2021
Recent Tax Audits
General Fund Revenue Analysis from the past five years
What Is The Issue?
Projected $500K per year budget deficit, due to:
- unfunded state & federal mandates (expenses beyond Whitehouse control)
- increased costs for labor, benefits, insurance, materials, equipment
- preserving bedroom/commuter community amid population growth
Must either make cuts or find additional revenue
- Council’s unanimous consensus was to not cut staff or services
- Majority vote on revenue options resulted in repeal of 0.75% credit on 1.5% income tax, effective Jan. 1, 2023
- Would generate about $588,000 more per year in income tax to village
What Is The Referendum?
The Nov. 8, 2022, election ballot question will read:
Referendum on Ordinance No. 2-2022
Village of Whitehouse
A majority affirmative vote is necessary for passage
Shall Ordinance No. 2-2022, providing
for a repeal of the income tax credit in
Whitehouse Municipal Code Section
186.08 and Section 186.081 for tax year
2023 and thereafter, be repealed?
YES = Reverse council action to eliminate credit
NO = Keep council action to eliminate credit
A YES vote means you want to overturn council’s decision; a NO vote means you want council’s decision to stand. Passage of the referendum (majority YES votes) means some residents who earn income outside of the village would retain a credit on their local taxes; failure of the referendum (majority NO votes) means all Whitehouse taxpayers would pay the full 1.5% rate, generating a projected $588,000 in additional revenue each year.
Who Would Be Affected?
Only Whitehouse residents who pay tax on income earned outside village limits (red section of chart)
- About 36% of total Whitehouse taxpayers; 34% of total Whitehouse residents, would no longer receive 0.75% credit and would pay full 1.5% rate, starting in 2023.
Does not raise base tax rate of 1.5% for anyone
Does not change tax amount due for anyone already paying 1.5%, including fixed incomes
Does not levy any new property tax for anyone
Notes: 1) No income tax increase since 1975; 2) Two consecutive excellent independent audits
What Would It Mean?
If referendum passes (majority YES votes):
Administration will present reduced 2023 budget to council, including:
- projected deficit spending
- probable cuts in services, maintenance, and/or capital improvement projects
- possible cuts in staff levels
If referendum fails (majority NO votes):
Administration will present scheduled 2023 budget to council, including:
- projected $588,000 per year increase in revenue
- projected sustainment of current levels of services, maintenance, projects, staff
In both cases, the Village would continue to seek healthy streams of revenue for expected growth.